Ujjivan Financial Services, which is set to become small finance bank next month, today posted 10 per cent decline in net profit at Rs 43.94 crore for the quarter ended December.
However, total income increased by 38.8 per cent to Rs 371.32 crore during the quarter, Ujjivan Financial Services said in a statement.
The net interest income rose to Rs 199.01 crore during the quarter.
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Commenting on the financial performance for the quarter, Ujjivan Financial Services Chief Financial Officer Sudha Suresh said during the quarter, "our profits were mainly affected due to costs related to transition to bank and increased provisioning arising due to lower collection efficiency post demonetisation."
Though RBI guidelines allowed for classification of portfolio as standard assets for 90 days with respect to over dues in demonetisation period of November and December; Ujjivan took a conservative stance with added provisions, she said.
"We intend to launch Ujjivan Small Finance Bank in the first week of February at Bengaluru. We have obtained most of the approvals required to commence our operations and are well prepared on technology, infrastructure, channels etc," she added.
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